Definition of Retainage:
Portion of a contracts final payment withheld by a principal (client or owner) until the project is complete in all respects, functioning satisfactorily according to the contract terms, and all mechanics liens have either been released or have expired.
A portion of a payment for construction work which is withheld from the contractor until the work is satisfactorily completed; the practice of withholding such a payment.
How to use Retainage in a sentence?
- For a project as large as constructing a lifelike robot overlord statue for the town hall rotunda, a 20% retainage doesnt seem very extraordinary at all.
- You should always keep a retainage so that you know the other party still has something to motivate him to do well.
- I was glad we had a retainage policy, so we could wait until everything was finished before paying the people.
Meaning of Retainage & Retainage Definition